The global lubricants market was valued at US$88 230.8 million in 2014, and it is expected to grow with a compound annual growth rate (CAGR) of 2.6% during 2015 - 2020, according to P&S Market Research’s ‘Global Lubricants Market Size, Share, Development, Growth and Demand Forecast to 2020’ report. The factors driving the growth of the market include growing automotive industry, increasing consumer awareness and government regulations. The power to regulate the petroleum industry lies with the minister of petroleum industries, but if license is to be issued, then there is a need for advice and assistance from the Energy Supply Committee (ESC). In the global market, standards issued by organisations, such as Japanese Automobile Standards Organization and American Petroleum Institute, govern the quality of lubricants.
Geographically, the Asia-Pacific market accounted for the largest share in the global lubricants market in 2014. The lubricants market in Asia-Pacific is growing mainly due to the increasing pressure of climate change, changing policies regarding emissions, which results in regulatory requirements for manufacturers to make superior quality engines compatible with high quality lubricants. Due to such reasons, Middle East and Asia-Pacific is expected to observe an increase in requirement of synthetic lubricants. The Sri Lankan government appointed public utilities commission of Sri Lanka (PUCSL) for regulating the lubricants market in the country. PUCSL informs the ministry of petroleum industries about the regulatory matters and policies with respect to liberalisation of the lubricants market.
The automotive industry is one of the major application areas for the lubricants market. Automotive lubricants are generally used in the crankcase of a vehicle engine, which ensures efficient operation of the vehicle. Lubricants are used in vehicles to reduce friction, which leads to longer lifespan and reduced wear and tear of the vehicles. The growth of the lubricants in automotive industry is mainly due to prices of convention fuels, increasing demand for heavy duty vehicles and light passenger vehicles, and increase in average lifespan of the vehicles. The growth in vehicle productions and sales is an opportunity for the lubricant manufacturers.
However, the arrival of hybrid-electric vehicles is restraining the growth of the market. The consumers are shifting towards hybrid-electric vehicles, because it decreases the fuel consumption considerably as compared to conventional vehicles, CNG vehicles and diesel vehicles. Hybrid-electric vehicles are costlier than conventional vehicles, but the life cycle cost (including maintenance and fuel cost) of hybrid-electric vehicles is much less than that of conventional vehicles.
Adapted from press release by Francesca Brindle
Read the article online at: https://www.hydrocarbonengineering.com/refining/19112015/global-lubricants-to-see-3-percent-growth-1760/